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Wall Street Turmoil Strikes Again as Chip and Storage Stocks Plunge

Wall Street Turmoil Strikes Again as Chip and Storage Stocks Plunge

金融界金融界2026/07/17 07:20
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By:金融界

Source: Global Market Report

Investors are dumping U.S. tech stocks en masse, selling off shares in chip manufacturing, storage companies, and other previously surging popular firms that have propelled the U.S. stock market this year.

On Thursday, a new wave of market turbulence swept across major exchanges. The Nasdaq Composite Index fell 1.5%. Storage and computer hard drive manufacturers were hit hard, with Sandisk, Western Digital, and Seagate all dropping more than 9%. Intel, Micron, and other chipmakers saw their share prices fall by around 6%.

The downturn spread to Asian markets. Japanese memory chip manufacturer Kioxia plunged 16% on Friday, while the Nikkei 225 also tumbled 5%. The Korean stock market, among the most volatile due to AI trading activity, was closed that day.

Futures data on indices show that the Nasdaq 100 and S&P 500 are set to open down 1.3% and 0.8%, respectively, on Friday.

This wave of tech stock sell-offs sends a new signal: investors are starting to question the ultra-high valuations at the core of the artificial intelligence boom. It also reflects that some traders have begun closing highly leveraged positions—these bets use massive borrowing to amplify returns and come with extreme volatility risk.

J.P. Morgan strategist Nikolaos Panigirtzoglou commented: "The investor deleveraging process that began in June is still ongoing. Leveraged equity ETFs, options, and margin accounts still have room for further deleveraging, which will continue to suppress market performance going forward."

TSMC reported a 77% year-on-year surge in quarterly net profit on Thursday and announced an additional $100 billion investment to expand U.S. production capacity; however, its Taiwan-listed shares fell more than 7% on Friday.

IBM plunged over 20% on Tuesday, with the drop even steeper than during Black Monday in 1987. The company had issued an earnings warning due to customers cutting traditional system procurement budgets in favor of investing in AI infrastructure.

Market research firm Vital Knowledge analysts commented: "Tech stocks are now in a dilemma; explosive growth in earnings can't lift share prices, and any earnings miss suffers heavy sell-offs."

SpaceX last month completed a record $86 billion IPO, representing the latest AI investment boom. The stock continued to pull back, closing down 3.1% at $131.11.

Meanwhile, Goldman Sachs' index of leading U.S. momentum stocks plunged 6%, with a cumulative decline of 20% so far this month.

Major tech firms are investing heavily to build data centers supporting the latest generation of AI large models, but their share prices are also weakening: Google fell 4.4%, Amazon was down 1.2%. In recent weeks, there has been concern about cloud giants' massive borrowing and expansion plans; the bonds issued by these companies have also come under pressure.

Additionally, investors are closely watching for further escalation in the U.S.-Iran conflict. On Thursday afternoon, the U.S. carried out strikes against Iran for the sixth consecutive day.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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